See a Social Security Number? Say Something! Report Privacy Problems to https://public.resource.org/privacy Or call the IRS Identity Theft Hotline at 1-800-908-4490 Form CO £2 (=3 «=> C-vl CV Q LU < o 07 990 Department of the Treasury Internal Revenue Service Return of Organization Exempt From Income Tax Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except black lung benefit trust or private foundation) ► The organization may have to use a copy of this return to satisfy state reporting requirements. OMB No. 1545-0047 !§04 use IRS label or print or type. See Specific Instruc- tions. C Name of organization American Petroleum Institute A For the 2004 c alendar year, or tax year beginning B Check if applicable: LJ Address change LJ Name change LJ Initial return LJ Final return LJ Amended return LJ Application pending 2004, and ending Open to Public | Inspection 20 Number and street (or P.O. box if mail is not delivered to street address) 1220 L Street, NW, Suite 900 Room/suite City or town, state or country, and ZIP + 4 Washington, DC 20005 • Section 501(c)(3) organizations and 4947(a)(1) nonexempt charitable trusts must attach a completed Schedule A (Form 990 or 990-EZ). G Website: ►www.api.org J Organization type (check only one) ► SI 501(c) (6 )« (insert no.) D 4947(a)(1) or D 527 K Check here ► LJ if the organization's gross receipts are normally not more than $25,000. The organization need not file a return with the IRS; but if the organization received a Form 990 Package in the mail, it should file a return without financial data. Some states require a complete return. L Gross receipts: Add lines 6b, 8b, 9b, and 10b to line 12 ► 76,360,112 D Employer identification number 13 : 0433430 E Telephone number (202) 682-8350 F Accounting method: LJ Cash IS Accrual LJ Other (specify) ► H and I are not applicable to sectbn 527 organizations. H(a) Is this a group return for affiliates? LJ Yes El No H(b) If "Yes,"enter number of affiliates ► H(c) Are all affiliates included? D Yes D No (If "No," attach a list. See instructions.) H(d) Is this a separate return filed by an organization covered by a group ruling? I—I Yes IXI No I Group Exemption Number ► N/A M Check ► |xl if the organization is not required to attach Sch. B (Form 990, 990-EZ, or 990-PF). p Revenue, Expenses, and Changes In Net Assets or Fund Balances (See page i 18 of the instructions.) 1 a b c d 2 3 4 5 6a b c 7 8a b c d 1a Contributions, gifts, grants, and similar amounts received: Direct public support Indirect public support Government contributions (grants) Total (add lines 1a through 1c) (cash $ noncash $ 1b 1c ) Program service revenue including government fees and contracts (from Part VII, line 93) Membership dues and assessments Interest on savings and temporary cash inve stments Dividends and interest from securities Gross rents |_6§ 1,345,844 Less: rental expenses I 6b I 2,605,568 Net rental income or (loss) (subtract line 6b from line 6a) Other investment income (describe ► Gross amount from sales of assets other than inventory Less: cost or other basis and sales expenses. Gain or (loss) (attach schedule) . . . Net gain or (loss) (combine line 8c, columns (A) and (B)) Special events and activities (attach schedule). If any amount is from gaming, check here ► □ Gross revenue (not including $ of contributions reported on line 1a) 9 fl L es6i d i r e ct e xp enses other than fundraising expenses I 9b (A) Securities (B) Other 8a 10,573 8b 1,998 8c 8,575 RECEIVE©™ ° r 10a Owoo oa l ea qf MAY*»E| Qfr OEWiW JJ r\th*r raim| [loss) from special events (subtract line 9b from line 9a) inventory, less returns and allowances . jods sold nue 10a 10b $l jss) from sales of inventory (attach schedule) (subtract line 10b from line 10a) . (from Part VII, line 103) (add lines 1d, 2, 3, 4, 5, 6c, 7, 8d, 9c, 10c, and 11). 1d 6c 8d 9c 10c 11 12 22,547,114 50,891,370 1,482,365 (1,259,724) 8,575 82,846 73,752,546 10 Prrjgfam oorv i oc s (from line 44, column (B)) 13 14 Management and general (from line 44, column (C)) 15 Fundraising (from line 44, column (D)) 16 Payments to affiliates (attach schedule) 17 Total expenses (add lines 16 and 44, column (A)) . 14 15 16 17 81,238,557 18 Excess or (deficit) for the year (subtract line 17 from line 12) 19 Net assets or fund balances at beginning of year (from line 73, column (A 20 Other changes in net assets or fund balances (attach explanation). . 21 Net assets or fund balances at end of year (combine lines 18, 19, and 20) 18 (7,486,011) t>dh. F.' 19 13,426,793 20 z For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions. MGA (2,011,533) 21 3,929,249 Form 990 (2004) Form 990 (2004) Page 2 Statement of Functional Expenses All organizations must complete column (A). Columns (B), (C), and (D) are required for section 501(c)(3) and (4) organizations and section 4947(a)(1) nonexempt charitable trusts but optional for others. (See page 22 of the instructions.) Do not include amounts reported on line 6b, 8b, 9b, 10b, or 16 of Part 1. pi (A) Total (B) Program services (C) Management and general (D) Fundraising 22 Grants and allocations (attach schedule) . . (rash $ nnnrash $ ) 23 Specific assistance to individuals (attach schedule) 22 I^Nifc«|iiii 23 ^w^^^^^ 24 Benefits paid to or for members (attach schedule). 25 Compensation of officers, directors, etc.Och.u 26 Other salaries and wages 24 25 2,707,880 26 20,991,267 27 Pension plan contributions 28 Other employee benefits 27 1,350,914 28 3,470,559 29 Payroll taxes 29 1,610,697 30 Professional fundraising fees 31 Accounting fees 30 31 694,500 32 Legal fees /CpnfM^ f ^ 33 Supplies /P-ffK^ 32 10,159,174 33 873,501 34 Telephone 34 661,484 35 Postage and shipping 36 Occupancy 35 306,171 36 2,967,065 37 Equipment rental and maintenance .... 37 102,771 38 Printing and publications 38 353,871 39 Travel 39 2,281,823 40 Conferences, conventions, and meetings 40 2,113,056 41 Interest 41 42 Depreciation, depletion, etc. (attach schedule)^) 42 813,076 43 Other expenses not covered above (itemize): agdr< • ?H. 43a 29,780,748 ^ b 43b c 43c d 43d e 43e 44 Total functional expenses (add lines 22 through 43). Organizations completing columns (BrID), carry these totals to lines 13—15 . 44 81,238,557 Joint Costs. Check ► □ if you are following SOP 98-2. Are any joint costs from a combined educational campaign and fundraising solicitation reported in (B) Program services? . ► D Yes If "Yes," enter (I) the aggregate amount of these joint costs $ ; (li) the amount allocated to Program services $ (Hi) the amount allocated to Management and general $ ; and (iv) the amount allocated to Fundraising $ Statement of Program Service Accomplishments (See page 25 of the instructions.) m no . Schedule J What is the organization's primary exempt purpose? All organizations must describe their exempt purpose achievements in a clear and concise manner. State the number of clients served, publications issued, etc. Discuss achievements that are not measurable. (Section 501(c)(3) and (4) organizations and 4947(a)(1) nonexempt charitable trusts must also enter the amount of grants and allocations to others.) Program Service Expenses (FHjirBd for SDIfcJO) and (4)onji, and 4947(a)(1) tn£t£; rxi oj^jorel for Schedule K (Grants and allocations $ (Grants and allocations $ (Grants and allocations $ (Grants and allocations $ e Other program services (attach schedule) (Grants and allocations $ ' f Total of Program Service Expenses (should equal line 44, column (B), Program services) . Form 990 (2004) Fomf 990 (2004) Page 3 izeihim Balance Sheets (See page 25 of the nstructions.) Note: Where required, attached schedules and amounts within the description column should be for end-of-year amounts only. (A) Beginning of year (B) End of year 45 Cash — non-interest-bearing 45 46 Savings and temporary cash investments 28,798,243 46 22,136,178 47a Accounts receivable b Less: allowance for doubtful accounts 48a Pledges receivable b Less: allowance for doubtful accounts 47a 2,691,683 2,591,548 47c 47b 72,704 2,618,979 48a 48c 48b 49 Grants receivable 49 50 Receivables from officers, directors, trustees, and key employees (attach schedule) . ^bcK- A>:&. ......... . 20,947 50 15,896 51a Other notes and loans receivable (attach schedule) b Less: allowance for doubtful accounts 51a 51c <0 in 51b < 52 Inventories for sale or use 84,809 52 84,809 53 Prepaid expenses and deferred charges 138,479 53 139,017 54 Investments — securities (attach schedule) . . ► PI Cost W FMV 43,931,355 54 40,140,118 55a Investments — land, buildings, and equipment: basis b Less: accumulated depreciation (attach schedule) 55a -Seh-fc-l 55c 55b 56 Investments — other (attach schedule) . . 56 57a Land, buildings, and equipment: basis b Less: accumulated depreciation (attach schedule) . . "Sen . Q 57a 6,781,445 1,846,475 57c 57b 5,337,263 1,444,182 58 Other assets (describe ► Deferred pension costs ) 874,226 58 925,704 59 Total assets (add lines 45 through 58) (must equal line 74) . . . 78,286,082 59 67,504,883 60 Accounts payable and accrued expenses 61 Grants payable 7,231,281 60 8,059,846 61 62 Deferred revenue 29,999,211 62 24,866,475 2. 63 Loans from officers, directors, trustees, and key employees (attach schedule) 63 .□ (0 64a Tax-exempt bond liabilities (attach schedule) b Mortgages and other notes payable (attach s 64a _i chedule} 64b 65 Other liabilities (describe ► Benefit Plan Liabilities ) 66 Total liabilities (add lines 60 through 65) 27,628,797 65 30,649,313 64,859,289 66 63,575,634 (0 d> u Organizations that follow SFAS 117, check here ► H and complete lines 67 through 69 and lines 73 and 74. 67 Unrestricted 68 Temporarily restricted 13,426,793 67 3,929,249 c CO 68 10 m 69 Permanently restricted 69 T3 c 3 u. o Organizations that do not follow SFAS 117, check complete lines 70 through 74. 70 Capital stock, trust principal, or current funds 71 Paid-in or capital surplus, or land, building, an here ► L7J and 70 (0 d eauioment fund 71 0) 72 Retained earnings, endowment, accumulated income, or other funds 73 Total net assets or fund balances (add lines 67 through 69 or lines 70 through 72; column (A) must equal line 19; column (B) must equal line 21) . . 72 < 0) z 13,426,793 73 3,929,249 74 Total liabilities and net assets /fund balan ces (add lines 66 and 73) 78,286,082 74 67,504,883 Form 990 is available for public inspection and, for some people, serves as the primary or sole source of information about a particular organization. How the public perceives an organization in such cases may be determined by the information presented on its return. Therefore, please make sure the return is complete and accurate and fully describes, in Part III, the organization's programs and accomplishments. Forrrf 990 (2004) Part IV-A Page 4 Reconciliation of Revenue per Audited Financial Statements with Revenue per Return (See page 27 of the instructions.) Part IV-B Reconciliation of Expenses per Audited Financial Statements with Expenses per Return $ a Total revenue, gains, and other support per audited financial statements ► b Amounts included on line a but not on line 12, Form 990: (1) Net unrealized gains on investments . . $ (2) Donated services and use of facilities I (3) Recoveries of prior year grants . . . (4) Other (specify): Net Unrealized (loss) on invest $ (856,164) Add amounts on lines (1) through (4) ► c Line a minus line b ► d Amounts included on line 1 2, Form 990 but not on line a: (1) Investment expenses not included on line 6b, Form 990. . . I (2) Other (specify): Schedule I $ (1,261,722) Add amounts on lines (1) and (2) ► Total revenue per line 12, Form 990 (line c plus line d) ► 74,158,104 per ► (856,164) 75,014,268 0) (2) (3) (4) c d 0) (2) $ Total expenses and losses audited financial statements . Amounts included on line a but not on line 17, Form 990: Donated services and use of facilities Prior year adjustments reported on line 20, Form 990. . . . Losses reported on line 20, Form 990 . Other (specify): Schedule I $ 1,261,722 Add amounts on lines (1) through (4)^ Line a minus line b ► Amounts included on line 1 7, Form 990 but not on line a: Investment expenses not included on line 6b, Form 990 . . $ Other (specify): (1,261,722) 73,752,546 Add amounts on lines (1) and (2) ► Total expenses per line 17, Form 990 (line c plus line d) ► 82,500,279 1,261,722 81,238,557 81,238,557 IzisimmM List of Officers, Directors, Trustees, and Key Employees (List the instructions.) each one even if not compensated; see page 27 of (A) Name and address (B) Title and average hours per week devoted to position (C) Compensation (H not paid, enter -0-.) (D) Contributions to employee benefit plans & deferred compensation (E) Expense account and other allowances Schedule £ 40 hour per week/ less than 1 hr. week 2,707,880 758313 75 Did any officer, director, trustee, or key employee receive aggregate compensation of more than $1 00,000 from your organization and all related organizations, of which more than $10,000 was provided by the related organizations? .► EH Yes [XI No If "Yes," attach schedule— see page 28 of the instructions. Form 990 (2004) Fomv990 (2004) Page 5 Other Information (See page 28 of the instructions.) Yes No 76 77 Did the organization engage in any activity not previously reported to the IRS? If "Yes," attach a detailed description of each activity. Were any changes made in the organizing or governing documents but not reported to the IRS? . . . If "Yes," attach a conformed copy of the changes. 78a Did the organization have unrelated business gross income of $1,000 or more during the year covered by this return? b If "Yes," has it filed a tax return on Form 990-T for this year? Was there a liquidation, dissolution, termination, or substantial contraction during the year? If "Yes," attach a statement Is the organization related (other than by association with a statewide or nationwide organization) through common membership, governing bodies, trustees, officers, etc., to any other exempt or nonexempt organization? . . b If "Yes," enter the name of the organization ► N/A and check whether it is EDexempt or D nonexempt. 81a Enter direct and indirect political expenditures. See line 81 instructions . . . 1 81a I ~ O ' b Did the organization file Form 1120-POL for this year? 79 80a 82a Did the organization receive donated services or the use of materials, equipment, or facilities at no charge or at substantially less than fair rental value? b If "Yes," you may indicate the value of these items here. Do not include this amount , . as revenue in Part I or as an expense in Part II. (See instructions in Part III.). . . I82b | rAfn 83a Did the organization comply with the public inspection requirements for returns and exemption applications? b Did the organization comply with the disclosure requirements relating to quid pro quo contributions? IS |& 84a Did the organization solicit any contributions or gifts that were not tax deductible? b If "Yes," did the organization include with every solicitation an express statement that such contributions or gifts were not tax deductible? 501(c)(4), (5), or (6) organizations, a Were substantially all dues nondeductible by members? Did the organization make only in-house lobbying expenditures of $2,000 or less? If "Yes" was answered to either 85a or 85b, do not complete 85c through 85h below unless the organization received a waiver for proxy tax owed for the prior year. 85c 50,891,370 85 85d 85e 85f 6,483,895 7,633,706 (1,149,811) c Dues, assessments, and similar amounts from members d Section 162(e) lobbying and political expenditures e Aggregate nondeductible amount of section 6033(e)(1)(A) dues notices. . . f Taxable amount of lobbying and political expenditures (line 85d less 85e) . . g Does the organization elect to pay the section 6033(e) tax on the amount on line 85f? h If section 6033(e)(1)(A) dues notices were sent, does the organization agree to add the amount on line 85f to its reasonable estimate of dues allocable to nondeductible lobbying and political expenditures for the following tax year? NJA 86 87 88 86b 87a 5S! 501(c)(7) orgs. Enter: a Initiation fees and capital contributions included on line 12 . Gross receipts, included on line 12, for public use of club facilities .... 501(c)(12) orgs. Enter: a Gross income from members or shareholders . . . Gross income from other sources. (Do not net amounts due or paid to other sources against amounts due or received from them.) At any time during the year, did the organization own a 50% or greater interest in a taxable corporation or partnership, or an entity disregarded as separate from the organization under Regulations sections 301.7701-2 and 301.7701-3? If "Yes," complete Part IX. 86a 87b itlA. 89a 501(c)(3) organizations. Enter Amount of tax imposed on the organization during the year under _Ck Enfe 5a section 4912 ►_ Hi A section 4955 >■_ 'JzlA. 76 77 !HI 78a 78b 79 80a 81b 82a 83a 83b 84a 84b 85a 85b 85o 85h 88 89b d 90a b 91 92 section 4911 501(c)(3) and 501(c)(4) orgs. Did the organization engage in any section 4958 excess benefit transaction during the year or did it become aware of an excess benefit transaction from a prior year? If "Yes," attach a statement explaining each transaction H/A Enter Amount of tax imposed on the organization managers or disqualified persons during the year under sections 4912, 4955, and 4958 ► Enter: Amount of tax on line 89c, above, reimbursed by the organization ► List the states with which a copy of this return is filed ► . D . i . st r!^.?f.9. . l . u . n !! , . i ?. Number of employees employed in the pay period that includes March 12, 2004 (See instructions.) l 90b I The books are in care of ► ?. r . e .*?. d .^ .?: **?!:&** Telephone no. ► C?02)_ 6 . 82 :? 3 . 5 .? Located at ► 1220 L Street, NW, Washington DC ZIP + 4 ► 20005 m. MA 254 Section 4947(a)(1) nonexempt charitable trusts filing Form 990 in lieu of Form 1041 — Check here ► Q and enter the amount of tax-exempt interest received or accrued during the tax year . . . ► I 92 I N/A Form 990 (2004) Form ; 990 (2004) Page 6 Analysis of Income-Producing Activities (See page 33 of the instructions.) Note: Enter gross amounts unless otherwise indicated. 93 Program service revenue: Schedule B 94 95 96 97 a b 98 99 100 101 102 103 b c d e Medicare/Medicaid payments Fees and contracts from government agencies Membership dues and assessments . . . Interest on savings and temporary cash investments Dividends and interest from securities . . Net rental income or (loss) from real estate: debt-financed property not debt-financed property Net rental income or (loss) from personal property Other investment income Gain or (loss) from sales of assets other than inventory Net income or (loss) from special events Gross profit or (loss) from sales of inventory Other revenue: a Schedule C Subtotal (add columns (B), (D), and (E)). Total (add line 104, columns (B), (D), and (E)). Unrelated business income (A) Business code 541900 (B) Amount 2,220,038 2,220,038 Excluded by section 512, 513, or 514 (C) Exclusion code 14 16 18 (D) Amount 1,482,365 (1,259,724) 8,575 231,216 (E) Related or exempt function income 20,327,076 50,891,370 82,846 104 105 Note: Line 105 plus line 1d, Part I, should equal the amount on line 12, Part I. I3SHTO1II Relatio nship of Activities to the Accomplishment of Exempt Purposes (See page 34 of the instructions. 71,301,292 73,752,546 Line No. ▼ Explain how each activity for which income is reported in column (E) of Part VII contributed importantly to the accomplishment of the organization's exempt purposes (other than by providing funds for such purposes). 93,94 Schedule L 103a Information Regarding Taxable Subsidiaries and Disregarded Entities (See page 34 of the instructions.) Name, address, and EIN of corporation, partnership, or disregarded entity D (B) < Percentage of ownership interest (C) Nature of activities (D) Total income (E) End-of-year assets N/A % % Information Regarding Transfers Associated with Personal Benefit Contracts (See page 34 of the instructions.) (a) Did the organization, during the year, receive any funds, directly or indirectly, to pay premiums on a personal benefit contract? . Q Yes D No (b) Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract? □ Yes O No Note: If "Yes" to (b), file Form 8870 and Forph4720 (see instructions). Please Sign Here Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, aMtcomplete/Oeclaration of preparer (other than officer) is based on all information of which preparer has any knowledge. -^ Sic/pitH»-pf officer . ^ r — e or print 'fiarae and title. ^ vi y^-*r Date Paid Preparer's Use Only Preparer's signature L Tate & Tryon, 805 15th St, NW, Suite 900 / / Check if self- | — | employed ► I I Preparer's SSN or PTIN (See Gen. Inst. W) Firm's name (or yours if self-employed), address, and ZIP + 4 ► Washington DC 20005 EIN ► 52 : 1855942 Phone no. ► (202)293-2200 Form 990 (2004) American Petroleum Institute Federal ID #13-0433430 Form 990 Part I, Line 8 2004 Description Date Sold Basis Sales Price Gain/(Loss) Obsolete Equipment 2004 1,998 10,573 8,575 Schedule A American Petroleum Institute Federal ID #13-0433430 Part VII, Line 93a 2004 Unrelated business income program service revenue 2,220,038 Subscriptions 853,408 Sales of Publications 244,531 Certification Programs Fees 12,145,103 Gross Meeting Revenue 2,290,490 Publication Sale Royalities 4,753,975 Reimbursement from Affilates 39,569 Related program service revenue 20,327,076 Schedule B American Petroleum Institute Federal ID #13-0433430 Part VI I, Line 103 Other Revenue 2004 Reimbursement of Expenses from Affiliates 26,250 Reimburesement of Expenses from Energy-ISAC 1 1 ,000 Other 45,596 Total 82,846 Schedule C American Petroleum Institute Federal ID #13-0433430 Form 990 Part IV, Line 54 2004 Description Rate Maturity Cost Market Value Allstate Finl Global FDG LLC 7.125% 9/26/2005 1,577,415 1,542,360 Bank America Corp 7.200% 4/15/2006 760,215 721,466 Morgan Stanley Dean Witter & Co 6.100% 4/15/2006 540,710 517,730 Norwest Finl Inc. SR NT 7.500% 4/15/2005 799,418 759,878 Wells Fargo & Co. New Global NT 7.250% 8/24/2005 227,197 220,575 Wells Fargo & Co. SUB NT 6.875% 4/1/2006 1 ,537,563 1 ,463,853 Fed Home LN Bks Cons BD 4.875% 5/15/2007 4,371 ,594 4,343,052 Fed Natl Mtg. Assn. 7.000% 7/15/2005 8,105,363 7,668,750 Federal Home LN BK 3.750% 8/15/2007 6,550,345 6,556,875 Federal Home LN BKS 3.375% 9/14/2007 3,006,414 2,997,180 Federal Home LN BKS Cons 2.125% 11/15/2005 7,042,000 6,951,910 Fedl Home LN BKS Preassign 2.875% 2/15/2007 3,005,487 2,974,680 U.S. Treasury NTS 2.625% 5/15/2008 3,587,227 3,421,810 41,110,947 40,140,118 Schedule D-1 American Petroleum Institute Federal ID #13-0433430 Part IV, Line 50 Receivables from Officers 2004 Employee Advances 15,896 Schedule D-2 Name Title & Time Devoted Bryron M. Cavaney Brenda S. Hargett Michele Rinn James Ford Ed Murphy Betty Anthony Jim Craig Harry Ng President & Chief Executive Officer 40hrs./wkly 100% CFO and Group Director of Special Programs and Financial Operations 40hrs./wkly 100% Corporate Secretary and Director of Corporate Services 40hrs./wkly 100% Group Director of Government Affairs 40hrs./wkly 100% Group Director of Industry Operations and Downstream 40hrs./wkly 100% Group Director of Industry Operations and Upstream 40hrs./wkly 100% American Petroluem Institute Federal ID #13-0433430 PartV Officers Wages 2004 Contribution to Average hours per week Employee Benefit Expenses & Other devoted to postlon Wages Plan Allowances Group Director of Policy and Communications 100% General Council and Director of Legal Services 100% Clarence P. Cazalot, Jr. Member - Executive Committee (As needed) Claiborne P. Deming Lynn Elsenhans Dale R. Laurance James J. Mulva J. Larry Nichols David J. O'Reily Ross J. Pillari Lee R. Raymond Bobby Shackouls Treasurer (As needed) Member - Executive Committee (As needed) Member - Executive Committee (As needed) Member - Executive Committee (As needed) Member - Executive Committee (As needed) Chairman of the Board (As needed) Member - Executive Committee (As needed) Member - Executive Committee (As needed) Member - Executive Committee (As needed) Totals All of the above may be contacted in care of the American Petroleum Institute 1220 L Street, N.W. Washington, DC 20005 40hrs./wkly 40hrs./wkly less than 1 hour per week less than 1 hour per week less than 1 hour per week less than 1 hour per week less than 1 hour per week less than 1 hour per week less than 1 hour per week less than 1 hour per week less than 1 hour per week less than 1 hour per week 1,023,316 233,517 166,800 291,455 286,342 264,517 232,883 209,050 2,707,880 334.903 43,957 24,974 19,644 187,081 66,346 51,887 29,521 758,313 Schedule E American Petroleum Institute Federal ID #13-0433430 Part I, Line 20 Other changes in net assets or fund balances 2004 Change in minimum pension liability (1,155,388) Unrealized Gain (Loss) on Investment (856,164) Prior Period Adjustment 19 (2,011,533) Schedule F American Petroleum Institute Federal ID #13-0433430 Part II, Line 42 Depreciation 2004 Depr. Acquisition Year Asset Cost Depr. Rate Expense Furniture & Equipment Computers 2004 111,874 10.00% 11,187 2003 84,534 10.00% 8,453 2002 127,041 10.00% 12,704 2001 214,651 10.00% 21 ,465 2000 174,446 10.00% 17,445 1999 121,294 10.00% 12,129 1998 329,078 10.00% 32,908 1997 356,649 10.00% 35,665 1996 464,490 10.00% 46,449 1995 109,403 10.00% 10,940 1994 & Prior 264,873 2,358,333 - 209,346 2004 197,420 33% 65,806 2003 267,116 33% 89,039 2002 317,612 33% 105,871 2001 464,461 0% - 2000 306,705 0% - 1999 & prior 318,871 1,872,185 260,716 Internal Use Software 796,101 156,375 Leasehold Improvements 1,754,826 186,639 Total 6,781,445 813,076 Accum. Depreciation (5,337,263) 1,444,182 Furniture and equipment are stated at cost and are depreciated on the straight-line basis over ten years. Leasehold improvements are stated at cost and re amortized over the lesser of the remaining term of the related leases ore the estimated remaining services lives of the assets. Internal use software and computers are stated at cost and amortized on the straight-line basis over three years. Schedule G American Petroleum Institute Federal ID #13-0433430 Part II Other Expenses 2004 Description Amount Studies, Analysis & Research* Pension Expense Postretirement Benefit Cost Software maintenance and license fees Contributions Insurance and property tax Bad Debt 18,573,677 8,693,911 1 ,697,261 287,679 107,547 420,673 29,780,748 * Studies, Analysis & Research is comprised of the following expenses: Laboratory Research Coalition Memberships & Grants 14,992,416 3,581,261 18,573,677 Schedule H American Petroleum Institute Federal ID #13-0433430 Part IV-A Line d (2) and Part IV-B Line b (4) 2004 Net sublease loss (1 ,259,724) Loss on disposal of Fixed assets (1 ,998) Part IV-A Line d (2) (1 ,261 ,722) Part IV-B Line b (4) 1 ,261 ,722 Schedule American Petroleum Institute 13-0433430 Schedule J API MISSION STATEMENT The mission of the American Petroleum Institute (API) is to influence public policy in support of a strong, viable U.S. oil and natural gas industry essential to meet the energy needs of consumers in an efficient, environmentally responsible manner. As the U.S. oil and natural gas industry's primary trade association, API: ■ Engages in federal and state legislative and regulatory advocacy that is based on scientific research; technical, legal and economic analysis; and public issues communication; ■ Provides an industry forum to develop consensus policies and collective action on issues impacting its members; and ■ Works collaboratively with all industry oil and gas associations, and other organizations, to enhance industry unity and effectiveness in its advocacy. API also provides the opportunity for standards development, technical cooperation and other activities to improve the industry's competitiveness through sponsorship of self-supporting programs. June 1999 American Petroleum Institute 13-0433430 Schedule K Advocacy API speaks for the petroleum industry before Congress, the executive branch of government, state legislatures, and the news media. It negotiates with regulatory agencies, represents the industry in court and participates in coalitions- building the grassroots support that prods Congress, the White House and state legislators to act. And it strives to enhance credibility on the environmental, health and safety issues that are central to the public's perception of the industry and its products. Information API is the source for information about the petroleum industry. It undertakes the scientific and economic analysis that is the foundation for the industry's stance on the current issues . It collects and compiles statistics. And it is without peer in finding and providing industry-specific information for people who need it. Industry Operations API has set standards for the U.S. petroleum industry since its founding in 1 91 9. In the global marketplace, these same standards are becoming international standards, and API's involvement in international events and organization is growing. More than 500 API standards are now used throughout the world. Many of these standards are now a part of both federal and state regulations. Maintaining quality The increasingly international nature of the petroleum business is evident in API's approach to certifying that products meet the industry's exacting standards of quality. Since 1924, API has licensed oilfield equipment manufacturers to use the API monogram, recognized as a mark of quality around the world. API licenses motor oils for use in both gasoline and diesel engines. API also certifies inspectors of storage tanks, pressure vessels, and piping. Education API organizes seminars, workshops and symposia on issues vital to the industry's livelihood. It provides training materials that help professionals in the oil and gas business meet regulatory requirements and industry standards. American Petroleum Institute 13-0433430 Schedule L API is the U.S. oil and natural gas industry's primary trade association. API influences public policy in support of a strong, viable U.S. oil and natural gas industry essential to meet the energy needs of consumers in a efficient, environmentally responsible manner. Subscriptions, publication sales, certification programs and other related revenues result from API's operations in advancement of its exempt purpose, as stated above.